ICE Canada Review: Canola Ends Mixed, CBOT Losses Bearish

Losses seen in canola reflected the downward price slide seen in the CBOT soybean complex, with firmness in the Canadian dollar also adding to the bearish price atmosphere, market watchers said.

Canola contracts had found some early support from a strong pick up in commercial demand, traders said. Some of the buying interest by commercials was believed to be the pricing of old export business. However, there were also reports that some fresh Canadian canola had also been sold to either China or Pakistan late last week, which helped to spark some of the early upward price action, they said.

Gains in canola had also been influenced by the advances seen in CBOT soyoil.

However, when CBOT soyoil values began to move lower selling in the nearby canola contracts picked up and eventually took values down, brokers said.

Profit-taking was an undermining price influence for the nearby canola contracts with a pick up in hedge selling by grain companies adding to the price weakness.

Steady domestic crusher demand continued to provide strong support under the market.

Spreading was a feature of the activity in canola and helped to augment the volume total.

There were an estimated 20,268 canola contracts traded Monday, up from the 17,357 contracts that changed hands during the previous session. Of the contracts traded, 9,676 were spread related.

Western barley futures were unchanged and untraded Monday. On Friday, no western barley contracts changed hands.